When you begin your journey to starting a laundromat, one of the most important things to get right is your location. There are many ways to secure the perfect location for your new laundry business – depending on availability in your target area, you might decide to buy an existing laundry business, purchase a property for renovation or ground-up construction, or lease a suitable commercial space. Leasing a property for your laundromat business can be a great opportunity, especially for first-time investors. Below is a list of everything you need to know about renting a laundromat space and securing a great location. Let’s dive in!
Did you know that Laundrylux has a nationwide network of laundromat brokerage partners with access to exclusive location opportunities? Contact us today to kick off your laundromat business venture!
Benefits of leasing a laundromat space
1. More flexibility
While you have a responsibility to fulfill your lease term, once it’s finished, selling your business or relocating to a new location will be easier than if you owned the property. There may also be an option to sublet or reassign the lease to another interested party before the term is up.
2. Fewer responsibilities
While you can make the necessary changes to the property to build your perfect laundromat layout and design, you won’t be responsible for any major repairs. As commercial properties tend to require a lot of maintenance and upkeep, this can save you money in the long run, even if your lease states that you must contribute to maintenance costs.
3. Lower up-front investment
Renting a commercial space for your laundromat is more cost-effective in the short term as you won’t need any major upfront investment. This makes it quicker and easier to get your business up and running.
What to look for in a laundromat lease location
When you’re looking to rent a location for your new laundromat, there are certain things to look for that will enable your business to thrive. Firstly, consulting neighborhood demographics will help you to determine whether your target area is suitable for a new laundry business. If you’re planning to convert another type of enterprise into a laundromat, choosing a business like a restaurant with the necessary utilities like water, gas, and electricity already in place will save you time and money. You should also look for:
- Store space of 1,500-6,000 sq. ft
- 3-5 dedicated parking spaces
- A population density of 12,000 people per sq. mile
- An average income of $50,000 or below, or $75,000 or below in major metropolitan areas
- Good visibility from the street, or located in a shopping center or plaza
- Proximity to other popular amenities like a grocery store or bus station
- Maximum window exposure
Why should a landlord consider leasing their property to you?
Laundromat businesses make excellent tenants for a variety of reasons. The industry is worth over $5 billion dollars in the US with a high ROI of 20-35%, making it an attractive opportunity to a range of investors. Here are some benefits you can present to a landlord when approaching them for a potential lease agreement.
1. Laundromats offer sustainable rental income
Laundromats are an extremely stable business model, providing landlords with a sustainable income. Owners range from white-collar professionals looking for a profitable investment opportunity to dedicated family-owned businesses passed down for generations. Laundromats are also low-risk tenants because:
- They are recession-resistant — regardless of whether the economy is booming or in a bust, people still need clean clothes.
- They have a high success rate, with 95% of new businesses thriving after the first five years.
- They are an essential business that’s pandemic-proof.
2. Laundromats are a high-traffic tenant
Laundromats can benefit a shopping center or plaza by bringing more customers to the door. Because laundromat customers are captive spenders while they wait for their laundry, other businesses can see a revenue increase of up to 30% when located nearby. Laundromats also attract a clientele of all income levels, as low-income customers tend to use traditional self-service facilities and higher-earning customers are likely to use time-saving services like wash and fold.
3. Expert support from Laundrylux makes it easy
With Laundrylux on board as your dedicated laundry partner, there’s no extra work for a landlord in making their commercial space laundromat-ready. As a full-service laundry provider with over 65 years of experience, we’ve transformed countless commercial spaces into laundromat success stories. Laundromat owners and landlords can benefit from our:
- World-leading equipment and an elevated store experience that guarantees repeat business
- Local partners for full project management for laundromat construction and renovation
- Custom branding and marketing to maximize customer outreach and retention
- In-house financing designed exclusively for laundromat owners – our Landlord Waiver ensures your project will avoid delays in funding or shipping!